Real Estate
Please note: Before scheduling classes, check with the department to determine the availability of courses for the upcoming semester or visit the Real Estate website.
The Wharton School has offered a real estate concentration for MBA students and undergraduates since 1985. The concentration has grown and developed, both in size and scope. The concentration consists of three required credit units and two electives. While the required courses focus on real estate law, development, and finance, the electives allow students to explore a variety of issues related to real estate. These include real estate economics, urban fiscal policy, the relationship between government policy and private development, international real estate markets, and the aesthetic and technical considerations of architecture.
The real estate concentration prepares students to be leaders in the real estate industry and provides the quantitative and qualitative tools necessary for their roles in shaping the future of the industry. To keep students informed of current issues in Real Estate, the Real Estate Department and Samuel Zell and Robert Lurie Real Estate Center sponsors conferences, seminars, and special programs on vital public policy issues relevant to the field.
Professor Joseph Gyourko is the chair of the Real Estate Department. The department is located in 1400 Steinberg-Dietrich Hall, and the department’s main phone number is: 215-898-9687.
Requirements for the Major ( Courses taken to satisfy the Real Estate major cannot be taken on a pass/fail basis)- a) Three required credit units (3 cu):
- b) Two credit units selected from the following:
This last course is offered as a supplementary course for real estate students by the University’s Department of Architecture. It counts towards the nineteen (19) credit units needed to graduate, as well as the five credit units needed for the real estate major.
MBA Advisor: Peter Linneman (telephone: 215.898.4794; email: linnemap@wharton.upenn.edu)
REAL 721/FNCE 721
Real Estate Investment: Analysis and Financing
Description: The course provides an introduction to real estate with a focus on investment and financing issues. Project evaluation, financing strategies, investment decision making and real estate capital markets are covered. No prior knowledge of the industry is required, but students are expected to rapidly acquire a working knowledge of real estate markets. Classes are conducted in a standard lecture format with discussion required. The course contains cases that help students evaluate the impact of more complex financing and capital markets tools used in real estate.
Requirements: Vary by instructor. May include two midterms or final, and case studies.
Prerequisites: Introductory Financial Analysis.
REAL 724
Urban Real Estate Economics
Description: Urban Real Estate Economics uses economic concepts to analyze real estate markets, values, and trends. The course focuses on market dynamics in the U.S. and internationally, with an emphasis on how urban growth and local and federal government policies impact urban development and real estate pricing. A group development project gives hands on experience, and invited guest speakers bring industry knowledge. Besides the group project and presentation, problem sets are required along with a midterm and an optional second exam.
Format: Lecture.
Midterm, market analysis project, and second exam.
Prerequisites: MGEC 621, Managerial Economics.
REAL 730/FNCE 730/BPUB 773
Urban Fiscal Policy
Description: The purpose of this course is to examine the financing of governments in the urban economy. Topics to be covered include the causes and consequences of the urban fiscal crisis, the design of optimal tax and spending policies for local governments, funding of public infrastructures and the workings of the municipal bond market, privatization of government services, and public financial systems for emerging economies. Applications include analyses of recent fiscal crises, local services and taxes as important determinants of real estate prices, the infrastructure crises, financing and the provision of public education, and fiscal constitutions for new democracies using South Africa as an example.
Format: Lecture, discussion, and exams.
Prerequisite: MGEC 621.
REAL 772/BPUB 772
Urban Public Policy and Private Economic Development
Description: This course considers the pervasive interaction between real estate developers and government. Governments influence real estate development in many ways: through zoning laws, taxes, public expenditures, impact fees, infrastructure, building codes, environmental regulations, to name just a few. Much of the time in the course is spent understanding the effect on residential and commercial real estate development of these government interventions.
Format: Lectures, formal class discussion, visitors from private developers and policy officials.
Prerequisites: Microeconomics course with a grade of B or better.
REAL 804/LGST 804/MGMT 846
Real Estate Law
Description: This course examines the fundamentals of real estate finance and development from a legal perspective. The course serves as a foundation course for real estate majors and provides an introduction to real estate for other students. It attempts to develop skills in using legal concepts in a real estate transactional setting. The course will be of interest to students contemplating careers in accounting, real estate development, real estate finance, city planning, or banking. The main topics covered vary by instructor and may include the following: land acquisition, finance; choice of entity; tax aspects; management (leasing, environmental); disposition of real property (sale of mortgaged property, foreclosures, wraparound mortgages, sale-leasebacks); and recent legal developments.
Format: Although some of the material is presented by lecture, the instructor expects considerable class participation.
May include midterm exam, final exam and/or group projects.
Prerequisites: None.
REAL 821/ARCH 768
(offered spring term only)
Real Estate Development
Description: This course evaluates “ground-up” development as well as re-hab, re-development, and acquisition investments. We examine raw and developed land and the similarities and differences of traditional real estate product types including office, R&D, retail, warehouses, single family and multi-family residential, mixed use, and land as well as “specialty” uses like golf courses, assisted living, and fractional share ownership. Emphasis is on concise analysis and decision-making. We discuss the development process, including market analysis, site acquisition, due diligence, zoning, entitlements, approvals, site planning, building design, construction, financing, leasing, and ongoing management and disposition. Special topics like workouts and running a development company are also discussed. Throughout the course, we focus on risk management and leadership issues. Numerous guest lecturers who are leaders in the real estate industry participate in the learning process.
Format: Predominantly case analysis and discussion, some lecture, project visits, class participation, multiple papers, and final exam. Readings include articles, books, and related materials as well as the case studies.
Prerequisites: REAL 721/FNCE 721 & REAL 804/LGST 804
REAL 840
Advanced Real Estate Investment and Analysis
Description: This course is designed for majors in Real Estate, but is also open to finance-oriented students who wish a deeper analysis of real estate investment and investment analysis issues than that offered in REAL/FNCE 721. The class will contain a mixture of lectures, guest speakers and case discussions. Academic research is paired with recent industry analysis of key issues in order to marry sound theory and empirical results with current events and practices. Several classes will include lectures outlining what economics and finance tells us about a number of topics. Generally, these will be followed by guest lectures from industry professionals who will focus on a specific application of the principles introduced in the lectures.
Format: Lecture, industry speakers
Prerequisites: REAL 721/FNCE 721
REAL 890 (.5 cu)
International Real Estate Comparisons
Description: As a truly non-U.S. focused course, we explore the differences and similarities in real estate markets, in a variety of countries. These real estate markets are examined against their investment structures, risk, financial markets, and economic, political, social, and cultural backdrops. The course particularly explores international investment risks and opportunities. Countries examined include France, Germany, The United Kingdom, Eastern Europe, Latin America, Japan and Southeast Asia.
Format: This course requires interaction of faculty lectures, student presentations, case analyses, and leading industry speakers. It is a second quarter course.
Students must read The Economist each week and The Financial Times daily.
REAL 891 (.5 cu)
Real Estate Entrepreneurship
Description: This half semester course exposes MBA students (and approved undergraduates) to the entrepreneurial opportunities, structures, investment decision making, and risks which are present in commercial real estate markets. Commercial real estate had historically represented a fertile area for young entrepreneurs as its asset base and relatively predictable cash flows allowed for substantial debt financing for entrepreneurs possessing limited equity. While this remains true, structural changes in the real estate industry are combining with emerging new technologies to eliminate some entrepreneurial opportunities while creating others. This course focuses on identifying realistic opportunities, how to develop the concept, identifying and mitigating risks, raising capital and exiting.
Format: This course consists of lectures by the professor; case discussions, and guest lectures by leading entrepreneurs.
The course readings are comprised of articles, real estate business plans, and offering documents. It is a first quarter course.
REAL 899
Independent Study
Description: All independent studies must be arranged and approved by a Real Estate Department faculty member with the exception of the Seevak Research Competition.
REAL 899
Seevak Student Research Seminar
Description: This class meets in the spring semester to analyze how to conduct research in the real estate market – where to find data; how to critique research; how to frame research questions; how to write a business research report; how to present a business research report. Topics are provided each year. For further information regarding the Seevak Research Competition see the Real Estate Department’s website: http://rider.wharton.upenn.edu/~wred/.
ARCH 762
(offered spring term only)
Design and Development
Description: The purpose of this course is to introduce non-architects to architecture, and to describe the important contribution that physical design can make to successful real estate development. Issues in contemporary architecture are discussed. The examples and readings illustrate the important role of architectural design in development. Topics include space planning, commercial buildings, retail environments, adaptive reuse, downtown development, mixed-use projects, housing (both single- and multi-family), and planned communities. Invited lecturers include architects, real estate developers, and homebuilders.
Format: Lectures; invited guest lecturers.
Homework assignments group project, and midterm.
Prerequisites: None.